HB 1066, HCA 1 -- INCOME TAX:  EARNED INCOME TAX CREDIT

CO-SPONSORS:  Riback Wilson (25), Bray, Thompson (72), Backer,
Dougherty, Selby, Merideth

COMMITTEE ACTION:  Voted "do pass" by the Committee on Ways and
Means by a vote of 19 to 1.

This bill allows a state individual income tax credit equal to
20% of any earned income tax credit claimed by the taxpayer on
the federal income tax return.  Any amount of credit which
exceeds the taxpayer's liability in any tax year will be
refunded to the taxpayer or carried forward into future tax
years.

This bill will become effective January 1, 2001.

HCA 1 -- Clarifies Internal Revenue Code reference.

FISCAL NOTE:  Estimated Net Cost to General Revenue Fund of
$72,677 in FY 2001, $124,402,332 in FY 2002, and $136,561,345 in
FY 2003.

PROPONENTS:  Supporters say that this bill will assist in the
transition from welfare or poverty to gainful employment for
future taxpayers.

Testifying for the bill were Representative Riback Wilson (25);
Legal Services of Eastern Missouri; Reform Organization for
Welfare; Lutheran Family and Children Services; American
Federation of Labor-Congress of Industrial Organizations;
Missouri Catholic Conference; Salvation Army; AARP; Catholic
Dioceses of Missouri; Service Employees International Union;
Citizens for Missouri's Children; Communication Workers of
Missouri; American Federation of State, County, and Municipal
Employees; Missouri Impact; and Missouri Association for
Community Action.

OPPONENTS:  There was no opposition voiced to the committee.

Bill Tucker, Assistant Director of Research

HB 1066 -- Earned Income Tax Credit

Co-Sponsors:  Riback Wilson (25), Bray, Thompson (72), Backer,
Dougherty, Selby, Merideth

This bill allows a state individual income tax credit equal to
20% of any earned income tax credit claimed by the taxpayer on
the federal income tax return.  Any amount of credit which
exceeds the taxpayer's liability in any tax year will be
refunded to the taxpayer or carried forward into future tax
years.

This bill will become effective January 1, 2001.